AO Can’t reject Assessee’s Valuation Method without Finding Defect

Deep Jyoti Wax Traders Pvt. Ltd Vs ITO (ITAT Kolkata) The Income Tax Appellate Tribunal (ITAT) Kolkata addressed a critical issue in the case of Deep Jyoti Wax Traders Pvt. Ltd vs. ITO. The dispute revolved around the Assessing Officer’s (AO) authority to reject an assessee’s valuation method under Rule 11UA(2) of the Income Tax Rules. Deep Jyoti Wax Traders Pvt. Ltd issued shares and determined their fair market value (FMV) using the Discounted Cash Flow (DCF) method, as per Rule 11UA(2)(b). Despite the absence of any defect in the assessee’s chosen method, the AO calculated...